Glossary · Doing the deal
In short
Describes debt where the lender agrees to be repaid only after other specified debts, like the SBA loan, are fully satisfied. This reduces risk for the primary lender.
Any seller note or other debt from an affiliate must be fully subordinated to the SBA loan. This means no principal or interest payments can be made on that debt until the SBA loan is repaid, or under very specific conditions defined by a full standby agreement.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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